Upgrades

Syrma SGS Technology (SYRMA) reported a strong operating performance in 2QFY25, with EBITDA margins expanding 160bp YoY due to operating leverage and a favorable business mix.

Havells India (HAVL) reported weak 2Q results with 3-5pp margin miss across segments as segmental margins contracted 2-6pp YoY (excluding Lloyd where loss narrowed YoY).

Havells reported strong performance in B2C segment with 20% revenue growth YoY. Broad-based growth across segments led to strong revenues but higher operational costs weighed on margins.

Kaynes Technologies (KAYNES) is rapidly scaling up its smart meter business to tap the huge 250m (INR750b) smart meter market over the next few years.

We maintain our BUY rating on the stock with an unchanged TP of Rs 1,572/share, implying an upside of 21% from the CMP. We value the stock at 28x its FY26 EPS.

SYRMA reported a weak operating performance in 1QFY25, with EBITDA margins declining 230bp YoY due to an unfavorable business mix.

Strong Q1 topline growth was offset by GM contraction due to higher RM costs; dip in EBITDA margin caused by unfavourable product mix

Genus Power (Genus) reported a healthy set of Q1FY25 numbers with its revenue growing to INR 4.1bn, up 60% YoY. Gross margins improved markedly to 44.4% (vs. 34.6% YoY) owing to stable raw material pricing.

We maintain our BUY recommendation on the stock.